Shanghai mobile marketing firm gets $35m in PIPE financing
Dodoca Information Technology, a Chinese enterprise mobile marketing solutions provider, will raise RMB222 million ($35 million) from investors including Shenzhen Capital Group and its mutual fund arm Hotland Innovation Asset Management.
According to a regulatory filing, Shanghai-based Dodoca, which trades on China's New Third Board over-the-counter platform, will issue 15.8 million new shares at RMB14 apiece. Shenzhen Capital will subscribe to about 140,000 shares while Hotland will pick up 210,000 shares. Dodoca's management team has agreed to subscribe to RMB30 million worth of shares.
The latest PIPE financing comes after Dodoca announced it raised RMB40 million via a private placement in September. Shenzhen Capital was among the investors.
A Dodoca spokesperson said in a statement that PIPE financing can provide quick cash for rapid development of the company. The firm remains focused on mobile internet, providing Chinese small-to medium enterprises (SMEs) with advanced mobile social marketing tools.
Founded in 2007, Dodoca designs and builds WeChat-based mobile applications, an instant-messaging app owned by Tencent Holding, as well as developing other customized marketing tools.
Part of the proceeds from the latest round will be used to acquire industry peer Weiba Informaiton Technology. Weiba provides enterprise marketing services on WeChat. The company generated revenue of RMB7.6 million and RMB26 million in 2013 and 2014, respectively, while net profit came to RMB3.1 million and RMB11 million.
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